NCBA Group recorded a slight increase in its net earnings to KSh 2.6 Billion at the end of the six months ended 30th June 2020.
This is compared to KSh 2.4 Billion posted at the end of the same period last year.
Buoyed by the lender’s balance sheet size, which more than doubled to KSh 262 Billion to KSh 514 Billion, loans disbursed to customers rose significantly from KSh 120.3 Billion to KSh 248.3 Billion.
According to the Group’s unaudited financial results for the period ended 30th June 2020, interest income earned from loans to customers rose from KSh 5.9 Billion to KSh 12 Billion.
While the lender’s financial performance improved significantly, including increased earnings from loans to customers, NCBA increased its provisions for loan losses astronomically from KSh 1.3 Billion to KSh 7.6 Billion.
The Group’s board said the H1 2020 financial statements represent six months performance of NCBA Bank (merged bank) for 2020 while the prior year is those of CBA. The board said the planned integration of all the lender’s regional subsidiaries, is now complete.
The lender has restructured loans amounting to KSh 58 Billion to assist customers in coping with the Covid-19 disruption.
NCBA warns that its business is expected to be impacted by slow growth in lending and revenues in the short to medium term.
The Group’s Gross Non-performing loans increased significantly from KSh 12.2 Billion to KSh 38.7 Billion at the end of the six months ended 30th June 2020. Its pre-tax profit declined from KSh 4 Billion to KSh 3.9 Billion during the period under review.
Owing to the merger of NIC and CBA, total shareholders equity of the merged outfit more than doubled from KSh 31.8 Billion to KSh 70.3 Billion.
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